6650 Via Austi Pkwy

Suite 150
Las Vegas, NV 89119

(702) 631-5161 Phone

(702) 631-9820 Fax

March 14, 2011

Hon. Mayor Gregor Robertson and Council

Vancouver City Hall
453 West 12th Avenue
Vancouver, BC V5Y 1V4

RE: PUBLIC HEARING STATEMENTS REGARDING RELOCATION OF

EDGEWATER CASINO

Dear Mayor Robertson and Members of the Council:

It is clear from the numerous statements regarding the status of the current Edgewater Casino as
made by both Council members and public speakers through the first two nights of the public
hearing that a crucial fact is not being addressed: the continued operation of the temporary
casino beyond February, 2013 is uncertain.

As Council knows, the Edgewater Casino was originally permitted in 2004 as a “Temporary”
Class 2 Casino facility, with Development Permits originally set to expire December 3, 2008. As
part of Paragon’s due diligence prior to purchasing the assets of Edgewater Casino, Inc., Paragon
needed to, among other things, secure the extension of the casino’s Development Permits
through July, 2013 so as allow adequate time to “identify, secure, entitle, finance, construct and
open a permanent casino based mixed use destination project in the City of Vancouver”
(Administrative Report – Extension of Time-Limited Permits for Casino-Class 2 Use, May 25,
2006). A copy of the report is attached.

On May 30, 2006 City Council approved by unanimous resolution that:

“Council advise the Development Permit Board that based on the merits of the Paragon
Gaming Inc. proposal it supports the Board’s consideration to the time-limited
development permits for the Edgewater Casino from the current expiry date of December
3, 2008 to the earlier of:
a) Relocation of the casino operation to a premises other than the Plaza of
Nations; and
b) July 31, 2013.”

On June 6, 2006 the Development Permit Board approved the extension of Edgewater
Development Permits (DE408507 and DE40862). The Development Permit Staff Committee
Report (May 31, 2006; copy attached) noted:
GAMING • DEVELOPMENT • MANAGEMENT
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(702) 631-5161 Phone

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“Following a Public Hearing on January 20 and 21, 2004, City Council agreed to amend
the CD-1 By-law governing the Plaza of Nations site to include “Casino-Class 2” as a
permissible use. On the basis that the Plaza of Nations was intended to be a temporary
location for a casino, enabling the proponents to secure a site and construct a new
permanent casino facility elsewhere, Council adopted two resolutions relating to the
Casino-Class 2 use being “time limited”.

Paragon was advised by City staff the City’s long term plans for the Plaza of Nation did not
envision casino use and was ultimately seen as being more suited to civic, public assembly and
performance events. Accordingly, both the City Council’s unanimous resolution of May 30,
2006 and the Development Permit Board’s June 5, 2006 approval of the permits’ extension
included conditions that preclude the Plaza of Nations as a site for the Permanent Casino.

During this same time period, Paragon was, prior to making the decision to purchase the assets of
Edgewater Casino, Inc., negotiating with Canadian Metropolitan Properties, Inc. (CMP), the
landlord of the Edgewater Casino, to extend the existing lease through 2013. Through that
process Paragon learned that CMP would ultimately be seeking to redevelop the entire Plaza of
Nations site. On August 9, 2006 CMP outlined its major development objectives for Paragon,
including moving from an overall “entertainment” designation to, primarily, residential towers
and a limited amount of commercial development. Paragon acknowledged that CMP’s
expectations of the value of its waterfront lands were inherently greater than the values
associated with securing a site on which to build a destination casino complex: values which
would be driven more by attributes of visibility, access, and parking as opposed to the more
subjective cache and value of expansive waterfront views.

Specifically, CMP has presented plans to the City for the redevelopment of the entire site which,
among other things, ultimately call for the demolition of Building B (where Edgewater’s offices
and security/surveillance suite is) and Building C (where the casino is), to make way for CMP’s
proposed build out of their new residential/commercial development. A recent comment made
by the press: “in fact, the landlord is willing to consider building around the existing casino or
incorporate it into the new community” is misleading in light of the fact that CMP made it quite
clear in 2006 that its main focus was residential uses, and in 2010 CMP announced its intent to
partner with Aquilini Group to build a hockey rink and a 200 room hotel: all of which would
render the CMP site as unacceptable for Paragon’s long stated plans for developing a destination
casino complex in Vancouver. In short, the development program presented by CMP is mutually
exclusive of, and detrimental to, Paragon’s development objectives: CMP’s objective is
essentially residential in character, with all site considerations designed to maximize the build
out and value of residential uses. Additionally, statements made to the press by a representative
of CMP that “with a tenant of that size, if we are able to accommodate them we would certainly
look at that” are similarly misleading as CMP has been aware of our development program for
four years, and acknowledged in 2006 that Paragon’s program was incompatible with what CMP
sought for the Plaza of Nations lands, and the current plans presented to the North East False
Creek Task Force are proof of that incompatibility.

GAMING • DEVELOPMENT • MANAGEMENT

 6650 Via Austi Pkwy
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Las Vegas, NV 89119

(702) 631-5161 Phone

(702) 631-9820 Fax

Finally, Paragon has had discussions with CMP regarding the extension of the existing lease for
a short term period beyond the current expiry of February, 2013 so as to allow the completion of
construction and opening of the proposed destination casino complex at BC Place. As has been
noted in the press comments of a CMP representative, CMP rejected Paragon’s proposal to
extend the existing lease, and countered with a proposal for a new lease. Paragon has rejected
that approach, as it will progressively remove Paragon’s existing lease rights to parking and use
of the Plaza of Nations assembly area as CMP commences with construction of its development
plan. Council will appreciate that, during the 2010 Olympic period, the Edgewater Casino was
progressively shut off from its customers through loss of parking, loss of vehicular access and,
ultimately, loss of patron access to the casino. What CMP has proposed will result in the same
operating conditions for the Edgewater as it experienced during the Olympic period: Paragon
would have been better off closing the doors to the facility. Accordingly, if the proposed project
at BC Place is not approved by Council, Paragon will not seek any extension of the CMP lease
beyond the July, 2013 expiry of the Development Permits.

In summary, the ability to stay at the Plaza of Nations past 2013 is negated by:

1. the City of Vancouver’s Development Permit conditions: it was always intended to

be an interim location;
2. the fact that CMP’s proposed project is not conducive to destination casino use; and
3. the fact that CMP is unwilling to extend Paragon’s existing lease rights beyond the
current February, 2013 termination date of the lease.

Throughout this entire process, Paragon has worked in concert with the City, PavCo, and the
BCLC to secure the entitlements required to relocate and develop the Permanent Casino as
originally presented to City Council in 2006. As we have emphasized from the beginning, time
is of the essence: a fact that was relayed in meetings Brent MacGregor and I had with individual
councilors last summer and, of course, in meetings with City staff commencing in May, 2006.
Council should consider the near term future of the existing Edgewater beyond February, 2013 is
highly uncertain given the inability to achieve a lease term extension and, more importantly,
pending operational impacts caused by development of CMP’s site.

Accordingly, the flow of gaming revenues to the City and the permanence of over 600 jobs
which currently exist at Edgewater are not guaranteed, and Council needs to understand that as it
considers its decision on this application.

GAMING • DEVELOPMENT • MANAGEMENT

 6650 Via Austi Pkwy
Suite 150
Las Vegas, NV 89119

(702) 631-5161 Phone

(702) 631-9820 Fax

Very sincerely yours,

John Cahill
Paragon Gaming, Inc.
It’s Secretary

CC: City Clerk, City of Vancouver

Dr. Penny Ballem, City Manager, City of Vancouver
Mr. Michael Magee, Chief of Staff, City of Vancouver
Mr. Brent Toderian, Director of Planning, City of Vancouver

Attachments: Administrative Report: Edgewater Casino – extension of time-Limited Permits

for Casino-Class 2 Use (May 24, 2006);

Development Permit Staff Committee Report – 760 Pacific Boulevard (May 31,
2006);

Plaza of Nations Concept Plan (July 10, 2006)

GAMING • DEVELOPMENT • MANAGEMENT

LATE DISTRIBUTION
FOR COUNCIL – MAY 30, 2006 A14
CITY OF VANCOUVER

ADMINISTRATIVE REPORT

Report Date: May 24, 2006

Author: Rob Jenkins
Phone No.: 604.873.7082
RTS No.: 06006
VanRIMS No.: 11-3500-10
Meeting Date: May 30, 2006

TO: Vancouver City Council

FROM: Director of Current Planning in Consultation with the Directors of Social

Planning, Legal Services and Development Services

SUBJECT: Edgewater Casino (at the Plaza of Nations) – Extension of Time-Limited

Permits for Casino-Class 2 Use

RECOMMENDATION

THAT Council advise the Development Permit Board that based on the merits of the
Paragon Gaming Inc. proposal, it supports the Board's consideration of an extension to
the time-limited development permits for the Edgewater Casino (DE408507 and
DE40862), from the current expiry date of December 3, 2008 to the earlier of:

a) relocation of the casino operation to a premises other than the Plaza of

Nations; and

b) July 31, 2013,

and requests the Development Permit Board consider this matter by June 9, 2006; and

THAT if the Development Permit Board approves the extension, any consequential
adjustments in the legal relations between the City and Edgewater Casino Inc. that
the Director of Legal Services considers advisable shall be made by her on behalf of
the City.

CITY MANAGER'S COMMENTS

The City Manager RECOMMENDS approval of the foregoing.

Edgewater Casino (760 Pacific Boulevard) - Extension of Temporary Permits 2

COUNCIL POLICY

Following a Public Hearing on January 20 and 21, 2004, Council approved in principle the
application by Patrick Cotter Architect Inc. to amend CD-1 By-law No. 7592 for 750 Pacific
Boulevard (Plaza of Nations) to permit a Casino – Class 2, this being a casino that includes slot
machines. One of the conditions for approval is that the casino would operate at this site for
a period no greater than four years from initial occupancy.

False Creek North Official Development Plan identifies the Plaza of Nations complex as a
commercial precinct.

False Creek North: Land Use Policy (2005)

(1) Special Event, Festival and Entertainment Functions – Commercial, entertainment, retail,
hotel and tourist facilities are considered to be compatible uses at the Plaza of Nations; and
(2) The Enterprise Hall (Edgewater Casino) is identified as a Legacy Building.

PURPOSE

This report seeks Council support for an extension to the time-limited development permits
for the Edgewater Casino at the Plaza of Nations (760 Pacific Boulevard).

The Temporary Casino Use Covenant (BW315817) applicable to the Plaza of Nations site
requires that any application for a time extension of the Casino use be referred to City
Council for consideration.

BACKGROUND

Council approved an amendment to the CD-1 zoning on the Plaza of Nations site in 2004, to
permit a Casino – Class 2 including slot machines. The Edgewater Casino subsequently opened
on February 4, 2005.

Edgewater Casino Inc. (Edgewater), the Service Provider (casino operator) for the Edgewater
Casino at the Plaza of Nations has been unable to operate on a profitable basis. Paragon
Gaming Inc. (Paragon) entered into a contract to purchase all the issued and outstanding
shares of Edgewater from its current shareholders. Subject to a number of conditions,
including approval by the BC Lottery Corporation (BCLC) and the BC Gaming Policy and
Enforcement Branch (GPEB), Paragon will, through this share purchase, become the new
Service Provider to the BC Lottery Corporation for the Edgewater Casino. On May 2nd 2006,
the Supreme Court of British Columbia granted initial creditor protection to Edgewater to
June 9, 2006, at which time Paragon expects to be able to advise the Court whether or not it
will complete the purchase of the Edgewater shares.

A key factor in its decision whether or not to complete the share purchase is the City’s
extension of development permits DE408507 and DE40862. Paragon is seeking to obtain from
the City an amendment to Development Permit DE408507 to extend the term of the current
approved Casino - Class 2 use in Building "C" at the Plaza of Nations (BC Enterprise Building)
and a similar amendment to Development Permit DE40862 to extend the term of the use of
Edgewater Casino (760 Pacific Boulevard) - Extension of Temporary Permits 3

138 parking spaces below Building "B" at the Plaza of Nations, for the exclusive use of the
Casino. These development permits, issued on December 3, 2004, permit the Casino - Class 2
use and related parking for the Casino for a limited period of time expiring December 3, 2008.
This date was chosen to allow the Casino operator sufficient time to secure a permanent site
and facility in or near the downtown, an agreed long-term objective of both the operator and
the City. It was not Council’s intent that the Casino use be temporary, just the location.

The extension requested is until July 31st, 2013. A Temporary Casino Use Covenant
(BW315817) applicable to the Plaza of Nations site, requires that any application for
extension be referred to City Council for consideration. This report is scheduled for the May
30, 2006 meeting of Council. With Council’s advice, the extension to the development
applications will be considered by the Development Permit Board at its meeting scheduled for
June 5, 2006. Public delegations can address the matter at that time, before a decision is
made by the Board.

DISCUSSION

At the time of the Edgewater Casino opening on February 4, 2005, the BCLC annual revenue
projections for this casino were approximately $125 million, but only $73 million of gross
revenues were actually generated during the first year of operations. This level of revenue
makes it difficult for the Service Provider to pay for the ongoing operating costs out of their
share of the gross revenues. Therefore, the Service Provider has not been able to pursue the
long-term objective of securing a relocated permanent facility.

Paragon’s application requests the extension "….to allow a seven year term of operation
through July 2013 so as to:
(1) secure financing required to acquire and reposition the Edgewater Casino; and,
(2) identify, secure, entitle, finance, construct and open a permanent casino based
mixed-use destination project in the City of Vancouver…..

Paragon's first priority will be the stabilizing and repositioning of the Edgewater so as to
generate the benefits all stakeholders originally envisioned."

It is noted that a seven year maximum extension from now to July 2013 represents a four and
one-half year extension from the existing approved expiry date of December 3, 2008.

The property owner, Canadian Metropolitan Properties Corp., and the casino Service Provider,
Edgewater Casino Inc., have confirmed in writing that they are aware of and authorize the
application by Paragon.

Stabilization and repositioning plan (see Appendix A for a full description) - Paragon advises
that in the short run, with BCLC, GPEB, and City approval to proceed, they will complete the
acquisition and commence a program of physical improvements and service enhancements
permitted in 2004 but never completed. They further note that these improvements will
significantly improve customer service and, importantly, the customer experience at the
Edgewater Casino, including dining, entertainment, and community benefit improvements.
Paragon is not seeking to increase the total gaming use already approved (up to 60 gaming
tables and 600 slots).
Edgewater Casino (760 Pacific Boulevard) - Extension of Temporary Permits 4

Process to secure a permanent facility - Paragon notes that since the 2004 permit approvals
no progress was made in identifying a permanent site and it is no longer possible to complete
that process and open a permanent facility by December 3, 2008. Upon completion of the
above-noted stabilization and repositioning of the Edgewater Casino, Paragon would
commence a five- to seven-year comprehensive process to develop a concept, identify and
secure a site, entitle, design, finance, construct, and operate a permanent facility in
Vancouver in collaboration with BCLC and the City of Vancouver. A detailed description and
schedule is provided in Appendix A. Paragon concludes it will take five to seven years to
complete the process.

City Public Benefits – City economic development policy supports employment opportunities
for local residents. The Casino provides significant direct employment in the order of 600
jobs as well as indirect employment and economic and social benefits including a local hiring
program, the funding of a social responsibility fund, and enhanced community access to the
Plaza of Nations performance space. The public benefits related to the local hiring program
and the social responsibility fund resulted from the 2004 CD-1 rezoning and are secured
through legal agreements. The community access to the outdoor performance space at Plaza
of Nations has been secured through a separate legal agreement with the owner of the Lands.
It is not proposed that these agreements change. If the Casino can survive, these agreements
would continue to apply with the noted public benefits accruing.

The Casino also generates significant and necessary revenues for the City. (See Financial
Implications section, following.)

New Bingo Facility - A key factor in Council’s 2004 support for allowing the proposed casino
at this location was the proponents’ commitment to build, as part of the permanent facility,
a new adjacent or free standing bingo facility to benefit Vancouver-based bingo charities.
This commitment was confirmed through a memorandum of understanding between the two
parties (not by way of an agreement directly involving the City).

The financial difficulties of Edgewater Casino Inc. have meant this commitment has not been
pursued. However, Paragon and the bingo charities have agreed on a new plan to realize this
commitment (see Appendix B, letters from Paragon and the Community Gaming Management
Association [representing the bingo charities] confirming the agreed arrangement).

Future development and other applications – Paragon, as part of its stabilization and
repositioning plan has also discussed with senior staff, on a preliminary basis, a number of
changes it is contemplating to the Edgewater Casino. These include, for example, changes to
the pedestrian and vehicular access, signage, landscaping, an addition to the exterior of the
building to contain a restaurant, and interior changes to provide a lounge/bar area. The
applicant has deferred submission of development applications related to these matters until
after the key matter of the extension of the time limits is addressed.

FINANCIAL IMPLICATIONS

Prior to the approval of the Casino in 2004, it was estimated that a fully operational casino at
this location would generate approximately $6.5 million a year for the City. In 2005, being
the first year of operation, the Operating Budget had only included $5.0 million of revenues.
Edgewater Casino (760 Pacific Boulevard) - Extension of Temporary Permits 5

However, given the changing regional gaming market conditions and the delay in opening the
Casino, only $3.4 million revenues were realized by the City in 2005. For 2006, a total of $4.0
million has been assumed in the Operating Budget based on the last quarter results for 2005.
The projection appears to be reasonable given the receipt of $985,000 in the first quarter of
2006.

Without the continued operation of the Casino, there is a budget risk due to the loss of
revenues to the City. Further, the extension of the development permits to 2013 would allow
the operator to find an alternate location that in the long run would most likely increase
revenue contributions to the City.

CONCLUSION

Extending the temporary time limit for the Edgewater Casino would enable the new
proponent, Paragon Casino Inc. to improve the economic viability of the Casino, and in turn
provide Paragon enough time to meet a commitment to the City to find a relocated
permanent facility in Vancouver. The eventual relocation to a new facility at a new location
would require a public hearing prior to a Council decision.

There would also be a number of other public benefits which would result from the extension
which include continued and potentially increased direct and indirect jobs, continued and
potentially increased revenue to the City, and the delivery of benefits related to the Casino’s
social responsibility and job creation program agreements. In addition, extension of the time
limit will assist the Casino in pursuing its commitment to build a bingo facility to benefit
Vancouver’s bingo charities.

*****
CITY OF VANCOUVER DEVELOPMENT PERMIT STAFF COMMITTEE REPORT
COMMUNITY SERVICES GROUP May 31, 2006

FOR THE DEVELOPMENT PERMIT BOARD

June 5, 2006

760 PACIFIC BOULEVARD

(COMPLETE APPLICATIONS)
DE408507 & DE408622 – ZONE CD-1 RJ/AH/DK

DEVELOPMENT PERMIT STAFF COMMITTEE MEMBERS

Present: Also Present:
B. Boons (Chair), Development Services R. Jenkins, Current Planning
M. Thomson, Engineering Services A. Higginson, Development Services
V. Morris, Social Planning K. Mulji, Engineering Services
L. Gayman, Real Estate Services
APPLICANT: PROPERTY OWNER:
John Cahill Canadian Metropolitan Properties Inc.
Paragon Gaming Inc. 750 Pacific Boulevard
10072 Jasper Avenue Vancouver, BC
Edmonton, AB V6B 5E7
T5J 1V8

EXECUTIVE SUMMARY

● Proposal: To extend the time-limited approval of the Casino-Class 2 use in Building C at the Plaza of
Nations until July 31, 2013 and to extend the time-limited use of 138 parking spaces in Building B to
coincide with that date.

See Appendix A Standard Conditions

Appendix B Standard Notes and Conditions of Development Permit
Appendix C Report to Development Permit Board, DE408507, August 16, 2004
Appendix D Report to Development Permit Board, DE408622, August 16, 2004
Appendix E Memorandum to Development Permit Board, dated December 14, 2004
Appendix F Report to City Council, dated May 25, 2006
Appendix G Minutes of Development Permit Board, August 16, 2004
Appendix H Minutes of Development Permit Board, December 20, 2004

● Issues:
1. Status of Casino Operator’s commitments to Bingo Charities

● Urban Design Panel: N/A

DEVELOPMENT PERMIT STAFF COMMITTEE RECOMMENDATION: APPROVE

THAT the Board APPROVE an extension to the time limit placed on the Casino-Class 2 use at the Plaza
of Nations (Edgewater Casino) and the provision of parking to serve the Casino, as per Development
Application Nos. DE408507 and DE408622, to July 31, 2013, subject to the following:
760 Pacific Boulevard (Complete Application ) May 31, 2006
DE408507 & DE408622 – Zone CD-1 RJ/AH/DK

1.0 Prior to the issuance of the development permit extensions, the following must be
completed:

1.1 suitable arrangements must be made, to the satisfaction of the Director of Social Planning,
to confirm the commitment between the Casino Operator and the Bingo Charities, to realize the
agreements reflected in the earlier memorandum of understanding between those parties.

Note to Applicant: See discussion on page 6.

2.0 That the conditions set out in Appendix A be met prior to the issuance of the Development
Permit extensions.

3.0 That the Notes to Applicant and Conditions of the Development Permit set out in Appendix B
be approved by the Board.

2
760 Pacific Boulevard (Complete Application ) May 31, 2006
DE408507 & DE408622 – Zone CD-1 RJ/AH/DK

● Legal Description ● History of Application:

Lots: 155 06 05 08 Request for time Extension submitted
Plan: 21425 06 05 31 Development Permit Staff Committee
District Lot: False Creek and 6352

● Site: The Plaza of Nations site is located on the south side of Pacific Boulevard, across from BC Place
Stadium. Three buildings surround the Plaza performance stage. The Edgewater Casino is located in
the Enterprise Centre, known as Building C, (DE408507), immediately adjacent to False Creek. A
portion of the parking for the casino is located under the adjacent building, known as Building B,
addressed as 750 Pacific Boulevard (DE408622).

● Context: Significant adjacent development includes:

(a) BC Place Stadium

(b) GM Place
(c) Area 9, False Creek North ODP (future park)
(d) Area 6C, False Creek North ODP
(e) Coopers Park
(f) Coopers Park neighbourhood (under construction)
(g) Area 5B, False Creek North ODP

3
760 Pacific Boulevard (Complete Application ) May 31, 2006
DE408507 & DE408622 – Zone CD-1 RJ/AH/DK

● Background:

Rezoning and Development Permit Approvals:-

Following a Public Hearing on January 20 and 21, 2004, City Council agreed to amend the CD-1 By-law
governing the Plaza of Nations site to include “Casino-Class 2” as a permissible use.

On the basis that the Plaza of Nations was intended to be a temporary location for a casino, enabling
the proponents to secure a site and construct a new permanent casino facility elsewhere, Council
adopted two resolutions relating to the Casino-Class 2 use being “time-limited”:

(a) That, prior to enactment of the CD-1 amending by-law, the proponents shall make arrangements to
the satisfaction of the Director of Planning and the Director of Legal Services to ensure that the
Casino-Class 2 use at the Plaza of Nations complex will only operate at this location for up to four
years after the issuance of the initial occupancy permit for this use.

(b) That, prior to approval by Council of an amended form of development for the Plaza of Nations
complex to accommodate a temporary Casino-Class 2, the applicant shall obtain approval of a
development application by the Development Permit Board which shall have particular regard to
the following:

(i) Casino-Class 2 use to be limited to a period of no greater than four years from initial
occupancy.”

Prior to enactment of the amending by-law, a covenant was registered in the Land Title Office,
establishing that the Casino-Class 2 use “will only operate on the Lands at this location for up to four
(4) years after the issuance of the initial occupancy permit for this use”.

The development permits for this project, related to the casino building and to the parking located
under Building B, were also time limited for four (4) years.

An Occupancy Permit was issued in January 2005 and the Edgewater Casino opened for operation on
February 4, 2005.

Request for Extension of the Time-Limited Approvals:

In April 2006, City staff were advised that Paragon Gaming Inc. (Paragon), a Nevada-based gaming and
entertainment company, had entered into an agreement with Edgewater Casino Inc. (Edgewater), the
operators of the Edgewater Casino, to purchase all existing and outstanding shares of that company. If
the purchase is completed, Paragon intends to make improvements to the Edgewater operation to
increase its viability. In addition, and more germane to the request for the extension of the time-
limited use at this site, Paragon has expressed their intention to pursue a permanent facility for a
casino in the City and has laid out a time-line for the project, from concept to completion, which
would extend until 2013. (See Appendix A within Appendix F)

Paragon has requested, therefore, that the two development permits related to the Casino-Class 2 use,
be extended until July 31, 2013.

The request from Paragon does not seek to alter any of the existing agreements or commitments
negotiated previously between Edgewater and the City, nor does it involve any proposed changes to the
building or operation. A subsequent development permit application proposing changes to the
building, the vehicular and pedestrian access, and landscaping is expected in the near future.

4
760 Pacific Boulevard (Complete Application ) May 31, 2006
DE408507 & DE408622 – Zone CD-1 RJ/AH/DK

Council’s Consideration of the Request for a Time Extension:

As required in the restrictive covenant registered prior to enactment, any request to extend the four-
year time limit on operation at the Plaza site requires Council’s consideration. On May 30, 2006,
Council passed the following resolution (See report attached as Appendix F):

“A. THAT Council advise the Development Permit Board that based on the merits of the Paragon
Gaming Inc. proposal, it supports the Board’s consideration of an extension to the time-limited
development permits for the Edgewater Casino (DE408507 and DE408622) from the current expiry
date of December 3, 2008 to the earlier of:

a) relocation of the casino operation to a premises other than the Plaza of Nations; and

b) July 31, 2013,

and requests the Development Permit Board consider this matter by June 9, 2006;

B. THAT Council request the Development Permit Board seek confirmation from Paragon and the
charity bingos to realize the agreements reflected in the earlier memorandum of understanding.*

C. FURTHER THAT, if the Development Permit Board approves the extension, any consequential
adjustments in the legal relations between the City and Edgewater Casino Inc. that the Director of
Legal Services considers advisable shall be made by her on behalf of the City.”

* Resolution B was not included in the staff report, but was established by Council on May 30.

● Applicable By-laws and Guidelines:

CD-1 By-law (349) – By-law No. 7592

● Response to Applicable By-laws and Guidelines:

The current permits were issued in accordance with the CD-1 By-law.

● Analysis of Edgewater Performance – Public Benefits from Rezoning:

As conditions of enactment, Edgewater was required to provide public benefits to Council’s

satisfaction. They comprised the following:

1)Social Responsibility Fund – Social Responsibility Fund – The casino operator is required to pay to the
City Two Hundred Thousand Dollars ($200,000) annually, in two installments, for the intended purpose
of mitigating potential negative consequences associated with casino gaming.

Staff response: The required annual contribution of $200,000 for 2005 was received in one installment
in September, and used, in part, to develop a Responsible Gambling Information Centre (RGIC) at
Edgewater Casino. The Centre, which is now operational, was developed in partnership with the BC
Lottery Corporation and Edgewater.

2) Job Creation Program – secured by way of a legal agreement, the program requires that ten percent
(10%) of new Full Time Employees hired must be from the targeted groups (unemployed and

5
760 Pacific Boulevard (Complete Application ) May 31, 2006
DE408507 & DE408622 – Zone CD-1 RJ/AH/DK

underemployed Vancouver residents, with the emphasis on residents of the Downtown Eastside area).
The program affects both initial start-up hiring as well as subsequent on-going hiring.

Staff response: In a memorandum dated March 31, 2006, Social Planning staff advised that Edgewater
had provided information establishing that they have met and surpassed the minimum requirements
outlined in the legal agreement. Within the casino, 11% of the employees were within the targeted
group and within the contractors, 27% of employees were within the targeted group.

3) Community Use of the Performance Plaza - secured by way of a legal agreement, which provides
that the performance space be made available to community groups for a minimum of three days a
month, during the Casino’s term, enabling access to the performance stage, seating area, washroom
facilities, loading and garbage facilities and back-of house facilities.

Staff response: The Managing Director of Cultural Services advises that Edgewater has met their
commitments under the Community Use Agreement. This resource and ongoing access to it is very
valuable to the community.

● Edgewater’s Commitment to Bingo Charities

As noted in the rezoning report, in 2003 a Memorandum of Understanding (MOU) was signed by
Edgewater Gaming Inc. and the group representing the city’s Bingo Charities, which provided that a
new and modern bingo facility would be developed in conjunction with development of a new
permanent casino facility in the City. The expectation was that the new facility would be developed
no later than 2006.

Staff response: The new bingo facility has not been developed to date and will not be provided prior
to the end of this year. In a letter dated May 23, 2006, Paragon has committed to working
“cooperatively and in good faith” with Planet Bingo to implement a resolution to the matters
addressed in the earlier MOU. (See Appendix B, page 1 of 2, to the Council report) In response, a
letter has been received from the Community Gaming Management Association, on behalf of the bingo
charities, supporting Paragon’s request for the extension of their time-limited approvals (Appendix B,
within Appendix F).

On May 30, 2006, Council passed a resolution advising the Development Permit Board to seek
confirmation that the previous agreements between the bingo charities and the casino operator would
be realized. (See Condition 1.1)

● Other Commitments

1) Provision of Parking - 365 spaces are available on-site, including the 138 spaces secured for
exclusive use by the Casino within the underground parking under Building B (750 Pacific Boulevard).
There is also significant off-site parking available within a ten-minute walk of the Plaza of Nations
site. Accordingly, in December 2004, the DP Board accepted the following recommendation:

Given the downtown location of the proposed Casino, the proximity of ample existing short-term public
parking in the area, and the opportunities to share existing parking resources with daytime workers,
staff recommend that the Board support the relaxation of the parking requirements for the Plaza site,
such that no additional off-site parking be required for this proposal. Support for this approach is
limited to the four-year term of the development permit for the Casino, and an updated parking
assessment should be completed prior to any extensions of the Casino approvals beyond this four year
period.

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760 Pacific Boulevard (Complete Application ) May 31, 2006
DE408507 & DE408622 – Zone CD-1 RJ/AH/DK

Engineering Services staff are not aware of any problems to date arising from the operation of the
parking and access serving the Casino. However, the applicant has indicated that they will be applying
for new development applications to allow for building and site improvements . Staff note that traffic,
parking and pedestrian patterns may be changed as a result of the new Casino operations, and
therefore given this new proposal and the Development Permit Board's previous direction,
staff recommend condition A.1.2

2) Temporary Casino Services Agreement - An agreement registered prior to development permit

issuance required the property owner to provide a mid-block pedestrian signal on Pacific Boulevard; a
pedestrian signal at Carrall Street; and improvements to the Carrall Street Greenway.

Staff Response: The mid-block signal has not been installed, and if required will likely be located at
Griffiths Way and Pacific Boulevard instead of the original location which was planned. Staff had
advised the owner that the current low pedestrian volumes do not warrant the signal being installed at
this time, but the situation will continue to be monitored. Funds have been secured from the owner
for both the Carrall Street signal and the Carrall Street Greenway improvements. They will be
expended in conjunction with the works to be completed by Concord Pacific at its future Presentation
Centre site east of Carrall Street, which is anticipated to commence construction later this year (2006).

3) Access through the site - The owner was required to design, construct and maintain a new
walkway/bikeway route through the site, which would not be impacted by the Casino access route and
valet parking service area.

Staff response: Engineering Services staff advise that the owner has completed improvements to
signage and markings to the pedestrian bikeway/walkways north and south of the plaza stage and this
has contributed to improved way-finding through the site.

4) Lighting Management Plan - The applicant has installed a comprehensive and sophisticated LED
exterior lighting scheme that is programmable to create different effects. As a condition of permit
issuance, a Lighting Management Plan was required, to allow the City to monitor and regulate the
exterior lighting of the building.

Staff response: Staff are not aware of any complaints being received related to the lighting system.

5) Policing - During the rezoning application in 2003, concerns were expressed that the introduction of
slot machines at the Plaza of Nations would increase pressure on the Vancouver Police Department,
both in terms of the potential for increased traffic and increased crime.

Social Planning staff have been advised, by the Acting District Commander for District 1, that anecdotal
evidence indicates no policing concerns directly related to the Edgewater Casino.

● Conclusion:

Based on the foregoing, staff recommend that the time-limited use of Casino-Class 2, and the
associated permit for Casino parking, be extended until July 31, 2013, subject to the conditions
recommended in this report.

NOTIFICATION

On May 25, 2006, 4,200 letters were sent to neighbouring property owners advising them of the
application. To date, 13 responses have been received. Six respondents stated that they support the
requested extensions, on the basis that:

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760 Pacific Boulevard (Complete Application ) May 31, 2006
DE408507 & DE408622 – Zone CD-1 RJ/AH/DK

• the Casino provides an entertainment alternative;

• the operation has been quiet with no traffic or visual impacts;
• that the casino operators have been good corporate citizens;
• there has not been any noticeable increase in crime related to the casino; and
• the Casino provides jobs for approximately 600 people.

Seven respondents stated that they do not support the requested extensions, on the basis that:
• gambling is addictive and destructive; and
• over time, there will be noise, traffic and disturbance impacts on the surrounding
neighbourhood.

DEVELOPMENT PERMIT STAFF COMMITTEE COMMENTS:

With respect to the decision by the Development Permit Board, the application requires the
Development Permit Board to exercise discretionary authority as delegated to the Board by Council.
There are no new/additional relaxations sought in this application for extension to time limits imposed
on both DE408507 and DE408622. (See Appendix E – parking relaxation)

The Staff Committee reiterated the need to revisit the issue of parking prior to 2013, once the Casino
is operating at a higher occupancy and the condition can be analysed. The Staff Committee
acknowledged that a further parking assessment would be required if new permit applications that
affect the required parking are received.

B. Boons
Chair, Development Permit Staff Committee

R. Jenkins
Assistant Director of Current Planning

Project Facilitator: A. Higginson

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760 Pacific Boulevard (Complete Application) APPENDIX A
DE408507 & DE408622 – Zone CD-1 Page 1 of 1

DEVELOPMENT PERMIT STAFF COMMITTEE RECOMMENDATIONS

The following is a list of conditions that must also be met prior to issuance of the Development Permit.

A.1 Standard Conditions

A.1.1 arrangements must be made, to the satisfaction of the Director of Legal Services and the
Director of Planning, to modify all necessary legal agreements and arrangements between the
City and Edgewater Gaming Inc., to reflect the extension to the time-limited approval of
DE408507 and DE408622; and

A.1.2 arrangements to the satisfaction of the Director of Legal Services and the General Manager of
Engineering Services for completion of a parking and traffic study to the satisfaction of the
General Manager of Engineering Services. This study is to be completed prior to the earlier
of twelve months after the date of issuance of any further development permits, or December
3, 2008.

Note to Applicant: The proposed arrangements would require that the applicant complete, at
their cost, any on-site and/or off-site improvements or alterations recommended by the study
to improve pedestrian and vehicular access to the site, and if deemed necessary,
secure additional parking.
760 Pacific Boulevard (Complete Application) APPENDIX B
DE408507 & DE408622 – Zone CD-1 Page 1 of 1

B.1 Standard Notes to Applicant

B.1.1 It should be noted that if conditions 1.0 and 2.0 have not been complied with on or before
(July 31, 2006), this Development Permit extensions shall be deemed to be refused, unless the
date for compliance is first extended by the Director of Planning.

B.1.2 This approval is subject to any change in the Official Development Plan and the Zoning and
Development Bylaw or other regulations affecting the development that occurs before the
permit is issuable. No permit that contravenes the bylaw or regulations can be issued.

B.1.3 A new extension application will be required for any significant changes other than those
required by the above-noted conditions.

B.2 Amended Condition of Development Permit: (see Appendix B to original DP Board report
for all original conditions established by the Board)

B.2.1 These permits are for a time-limited approval ending July 31, 2013.